Executive Committee Vs Board of Directors

A board of directors is a group of directors who oversee strategic planning and make decisions according to the organization’s goals as well as its vision, mission and values. The Board of Directors is responsible for balancing shareholder interests, ensure integrity and plan for the future of their organization.

A subset of a board, the executive committee is responsible for urgent matters and acts as a steering committee for the board. It is typically comprised of three members: a treasurer, secretary, vice-chairperson, and a chairperson. The chairperson usually is the CEO and leader of the committee, whereas the vice chairman assists the chairman and acts as their second in command when they are absent. The secretary is responsible for keeping minutes, maintains the committee calendar and ensures that all members have access important documents.

By design an executive committee is a small group. They are more flexible, and they can be able to meet with short notice in order to take decisions in a crisis. This lets the board focus their meetings on more pressing issues.

An executive committee can also be able to handle many routine matters and act as an alternative to the organization in situations that the board is not required to be present, such as standard legal or financial procedures. It is also a way to test controversial ideas and to see how the organization responds to them before bringing it to the entire board. However, the committee shouldn’t be a second-tier power structure, and it’s recommended to have a clear delegation of authority, as well as an internal set of checks and balances.


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